iPhone 3G Now Tops in U.S. Mobile Phone Sales: NPD

It was only a matter of time, since an October report also by market research firm The NPD Group already showed the iPhone trailing only the Motorola Razr in U.S. mobile phone sales, but gaining. A new report showed the iPhone 3G now at that top spot in U.S. mobile phone sales in Q3.

The Razr had been ranked #1 by NPD for the past 12 quarters.

In their press release, Ross Rubin, director of industry analysis for NPD said:

"The displacement of the RAZR by the iPhone 3G represents a watershed shift in handset design from fashion to fashionable functionality. Four of the five best-selling handsets in the third quarter were optimized for messaging and other advanced Internet features."

According to the report, the top handset models based on unit sales in Q3, were as follows:

1. Apple iPhone 3G
2. Motorola RAZR V3 (all models)
3. RIM Blackberry Curve (all models)
4. LG Rumor
5. LG enV2

This can't be good news for the struggling Motorola, who continues to watch other rivals pull away from it in the handset marketplace.

The bad news: domestic handset purchases by adult consumers declined 15% year over year in Q3 to 32 million units. Revenue for handset sales fell 10% to $2.9 billion, even with the average price rising 6% to $88.

Not all is rosy in handset land, it would appear.